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What happens if I tell it to list something that I have mistyped, haven't created yet, or have deleted?

If a given ID/slug doesn't match up with an existing tag then that item is ignored without error.

How do I get items to appear as a list (using HTML tags)?

Whether you use the template tag or the widget, specify the following information for the appropriate fields/arguments:

Before text: <ul><li> (or <ol><li>) After text: </li></ul> (or </li></ol>) Between tags: </li><li>